Ras Al Khaimah (RAK), once a tranquil emirate, has rapidly emerged as a dynamic real estate hotspot in the UAE. In 2024, the emirate’s real estate transactions surged to AED 15.08 billion, marking a 118% increase from the previous year.
The Demand-Supply Imbalance
Despite new developments, RAK faces a significant housing shortage. In 2024, only 318 units were completed in Marina Residence at Al Hamra and 89 units in Marbela 2. Projections for 2025 include 648 apartments and 13 lofts in Bay Residence, and 146 apartments in Gateway 2 at Mina. However, these additions fall short of meeting the escalating demand, particularly for waterfront properties near the upcoming Wynn Resort.
Factors Driving the Surge
Several elements contribute to RAK’s real estate boom:
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Population Growth: The population is expected to double to 650,000 by 2030.
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Economic Expansion: RAKEZ recorded 13,141 new company registrations in 2024, a 66% increase from 2023.
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Tourism and Entertainment: The upcoming Wynn Al Marjan Island resort is attracting global interest, boosting demand for nearby properties.
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Investment Appeal: Properties in areas like Al Marjan Island are yielding rental returns as high as 9%, surpassing many other emirates.
Market Outlook
With demand outpacing supply, property prices in RAK are expected to rise by 15-20% in the near future . The emirate’s strategic developments, combined with its natural beauty and investment-friendly policies, position it as a prime destination for real estate investors seeking high returns.
As Ras Al Khaimah continues its transformation, the real estate market offers promising opportunities for investors and homebuyers alike. However, the current supply constraints highlight the need for strategic planning to ensure sustainable growth and meet the burgeoning demand.
